Background

NOTE: Signed Offeror’s Letter to UNDP Confirming Interest and Availability - http://www.ba.undp.org/content/dam/bosnia_and_herzegovina/docs/Operations/Jobs/Offerors%20Letter%20to%20UNDP%20Confirming%20Interest%20and%20Availability.docx Letter to UNDP Confirming Interest and Availability.docx - to be sent to e-mail ba.shared.hr@undp.org with Subject: Job ID 89931.

Due to a long period of neglect and under-investment, urban infrastructure in BiH, public and residential buildings, energy systems and utilities, waste management, and transport, are now in need of expansion and modernization. From a global environmental standpoint, this situation contributes to a steady increase in greenhouse gases (GHG) emissions, primarily associated with energy use in public facilities. Public facilities are also the largest energy users and GHG emission sources in municipalities in BiH. Modernization, upgrade and expansion of municipal buildings, infrastructure, and services in BiH will improve the quality of urban life and achieve a range of important local and global environmental and sustainable development benefits.

To achieve abovementioned, the “Catalyzing environmental finance for low-carbon urban development” Project (UrbanLED) strives to leverage investment for transformational shift towards low-carbon urban development (LCUD) in Bosnia and Herzegovina thereby promoting safer, cleaner, and healthier cities and reducing urban GHG emissions. To enable this transformational shift, the Project provides technical support towards the implementation of technically and economically feasible low-carbon solutions in key urban sectors and promotes their wider uptake by municipalities and private sector via dedicated financial mechanisms. The Project has been financed by Global Environment Facility (GEF) and is directly implemented by UNDP Bosnia and Herzegovina Country Office.

In Bosnia and Herzegovina, energy efficiency projects have already demonstrated the potential for high financial returns but have not yet reached a stage where these projects are treated equally with other investment projects.

Among the various barriers that energy efficiency projects face, a lack of appropriate financing mechanisms represents an important barrier. Commercial banks in Bosnia and Herzegovina are unfamiliar with the energy efficiency projects and, in most of the cases, reluctant to fund them. Still, large-scale energy efficiency gains for public sector buildings are possible only if sustainable financing mechanisms for energy efficiency are devised.

To achieve sustainable financing, the implementation of the LCUD concept requires the adoption and implementation of certain economic instruments, based on creation of adequate business models. Such business models need to be founded on the principles of involvement of responsible public authorities as well as the private sector (through energy efficiency related SMEs). Market development through active involvement of government as a customer, information provider and policy maker are required for proper introduction and promotion of a concept of energy service companies (ESCOs) in BiH.

This all resulted with the fact that ESCO is still a new concept in Bosnia and Herzegovina which is not properly introduced.

The UrbanLED project provides support to the Federation of Bosnia and Herzegovina for development of ESCO financial mechanism. The national consultant will be responsible for providing technical assistance to the Environmental Protection Fund of the Federation of Bosnia and Herzegovina through:

• a) development of templates for energy performance contracts, which will be tested during the implementation of ESCO financial mechanism in the realization of infrastructure LCUD projects in the Federation of Bosnia and Herzegovina, and
• b) conducting thorough analysis of ESCO models with specific roles of the Environmental Protection Fund.

Duties and Responsibilities

The Consultant will develop templates for energy performance contracts, based on the provision of the draft Rulebook on energy service contracting and implementation/Energy performance contract, developed as bylaw document under Article 42, paragraphs 3 and 5 of the Law on Energy Efficiency of Federation of Bosnia and Herzegovina. Draft version of the Rulebook will be provided to the selected National consultant by the UNDP Project implementation team.

Article 9 of the Rulebook clearly specifies information that should be defined in the Contract. Additionally, contracts should defer in case of contracting the energy efficiency refurbishment of the building and in case of contracting energy efficiency renovation of the public lightning system.

Contract will be tested during the implementation of the pilot ESCO LCUD infrastructure project on one public building in the Federation of Bosnia and Herzegovina.

Additionally, selected National consultant will conduct an analysis of modalities on energy service contracting implemented with potential roles that Environmental Protection Fund of the Federation of Bosnia and Herzegovina could have within the ESCO financial mechanism. The analysis should contain specific scenarios for implementation of infrastructure projects in case when Environmental Protection Fund has role of, for example, bank or institution that minimize the risks of investments with SWOT analysis with regard to the capacities of the Fund to perform each of the roles in the tailored-made ESCO financial mechanism.

The National consultant will implement these activities under direct supervision of the FBiH Environmental Protection Fund and UNDP Project Manager. To achieve mutual understanding and coordination of activities, selected National Consultant will work in close cooperation with the members of the Working group established for the development of the Rulebook on energy service contracting and implementation/Energy performance contract. The purpose of this Working group is to develop legislative documents whose adoption is prerequisite for establishment of ESCO model in FBiH. International Consultant for the Development of the Financial mechanism and development of regulations on polluter pays principle will act as an advisor for overall process and provide inputs to the Local consultant stemming from knowledge and experience on general understanding and characteristics of modalities of ESCO financial mechanism.

The Consultant will be responsible for the following:

• Based on the provisions of the draft Rulebook on energy service contracting and implementation/Energy performance contract, develop templates for energy performance contracts. Templates should be developed in a form of contract samples (as the closest version of the final contract) which then will be adjusted to the objective of the contract.  Contract samples should clearly define the content or should be developed as instruction for the content of the each chapter of the contract;
• Conduct an analysis of modalities on energy service contracting implemented with potential roles that Environmental Protection Fund of the Federation of Bosnia and Herzegovina could have within the ESCO financial mechanism. The analysis should contain specific scenarios for implementation of infrastructure projects in case when Environmental Protection Fund has different role for example as a bank or institution that minimize the risks of investments with SWOT analysis with regard to the capacities of the Fund to perform each of the roles in the tailored-made ESCO financial mechanism.

The conducted analysis will serve as the basis for creation of relevant internal legislative documents of the Environmental Protection Fund together with improvement of current institutional setup within the Environmental Protection Fund needed for proper operatiolanization of ESCO financial mechanism by the Environmental Protection Fund. Developed contracts will be tested during the pilot implementation of ESCO LCUD infrastructure project in one public building in FBiH.

Based on the tasks given above, consultant will support the development of tailored-made ESCO financial mechanism for enabling scaling-up of sustainable finance of LCUD investment projects in FBiH. This should be a consultative process from start to end; with representatives of responsible institutions in FBiH.

National Consultant will work under direct supervision of the Environmental Development Project Manager and under coordination of the representatives of the FBiH Environmental Protection Fund (who will approve and confirm the quality of analysis of modalities on energy service contracting implemented with potential roles that Environmental Protection Fund) and Working group (who will approve and confirm the quality of developed samples of energy performance contracts) to complete all activities specified in this Terms of Reference.

It is envisaged that the level of effort for these tasks will not exceed 70 expert days. The assignment will not require presence in the UNDP premises. The assignment will include regular consultation/clarification meetings with the representative of the FBiH Environmental Protection Fund, UNDP Project Implementation Team and members of the Working group for the development of the Rulebook on energy service contracting and implementation/Energy performance contract.

Deliverables/outputs

Competencies

Corporate competencies:

• Demonstrates integrity by modelling the UN’s values and ethical standards;
• Promotes the vision, mission, and strategic goals of UNDP;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Treats all people fairly without favouritism;
• Fulfils all obligations to gender sensitivity and zero tolerance for sexual harassment;

Functional competencies:

• Strong interpersonal skills, communication and diplomatic skills, ability to work in a team;
• Openness to change and ability to receive/integrate feedback;
• Ability to work under pressure and stressful situations;
• Strong analytical, reporting and writing abilities;
• Excellent public speaking and presentation skills;

Required Skills and Experience

Academic Qualifications/Education:

• Masters’ degree or equivalent in an appropriate subject (technical background with excellent knowledge of financial mechanism in energy sector);
• PhD would be considered as an asset.

Experience:

• At least 10 years of experience in conducting research and providing consultancy services related to energy sector and financial mechanisms for the sector;
• Proven experience in analysis of institutional and management arrangements in energy sector in Bosnia and Herzegovina;
• Proven knowledge of local energy market circumstances on identification of needed actions;
• Experience in data collection and thorough identification of documents for at least 2 different projects (experience from BiH preferred);
• Experience working with multilateral organizations and the UN system preferred.

Languages Requirements:

• Knowledge of local languages and English (excellent writing, editing and communication skills) demonstrated in submitted one-page local and English segment of any relevant study/publication/written document compiled in order to assess language skills.

Longlisting/Shortlisting Criteria

Qualifications as stated in the ToR

Technical Evaluation Criteria

Evaluation

Individual consultants will be evaluated based on the following methodology:

Cumulative analysis

When using this weighted scoring method, the award of the contract should be made to the individual consultant whose offer has been evaluated and determined as:
a) responsive/compliant/acceptable, and
b) Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

• * Technical Criteria weight-70%
• * Financial Criteria weight- 30%

Interested individual consultants must submit the following documents/information to demonstrate their qualifications:

• Personal CV including past experience in similar projects and at least 3 references;
• Proposal:
  • Provide a brief methodology on how they will approach and conduct the work; or sample of previous document/strategy/paper done by the consultant;
  •  Explaining why they are the most suitable for the work;

Please scan all above mentioned documents and upload as one attachment only online through this website.

Note:

• For an assignment requiring travel, consultants of 65 years or more require full medical examination and statement of fitness to work to engage in the consultancy.
• Due to large number of potential applicants, only competitively selected candidates will be contacted for remaining steps of the service procurement process.